Although the S&P 500 lost about 1.5% this week, I believe stocks want to move higher. Pre-market futures indicated a higher open each of the five trading sessions, only to be pressured lower during trading hours on worries over the fiscal-cliff. Once a resolution to the fiscal-cliff is apparent, expect a significant rally.
Next Weeks’ Market Moving Events:
- Oil prices may gyrate as tensions between Israel and Hamas continue to rise.
- The Existing Home Sales report at 10:00 AM will be the key economic report of the day.
- Housing Starts data is released.
- The weeks’ busiest reporting day, is also likely to be a light volume day.
- Jobless Claims, Consumer Sentiment, Leading Indicators and EIA
- Petroleum reports are all on tap.
Thursday: Happy Thanksgiving
- Expect light trading volume on this half-day.
- Should there be a rally investors might be able to take advantage of some option pricing discrepancies today.
With politicians on holiday, action in the Middle East heating up, and our expectation of a volatile December, continue to take advantage of any broad market rally to sell weaker names and buy puts for your portfolio.